Swiggy Share Price IPO Listing 2024 Highlights: Swiggy makes positive debut, closes 10.5% higher

Shares of Swiggy IPO were fetching a premium of 0.26% in the grey market. The grey market premium is an unofficial place to trade shares ahead of listing. The GMP of Swiggy indicates a lacklustre listing for the company.

“At higher price band, Swiggy is demanding an EV/Sales multiple of 7.3x, which is at discount to its only listed peer i.e. Zomato. Despite reporting robust growth during the reported period, currently its operations are loss making at EBIT level. Despite the company management guiding profitable operation in future, we are cautiously optimistic on the future performance. Thus, considering the future growth potential in the quick-commerce and supply chain distribution market and the duopoly market structure, we are assigning a “Subscribe for Long Term” rating for the issue,” said Choice Broking in an IPO note.

“We believe Swiggy Ltd IPO brings investors an opportunity to invest in a new age fast growing consumer first technology company offering an easy to use convenience platform. We think the company’s continuous expansion in hyperlocal commerce, evident through its increased dark store footprint and faster delivery times, reinforces its leadership in convenience and service quality. We also believe with notable improvements in Average Order Value (AOV) and contribution margin—from -7.5% to -3.18% in just a year—Swiggy demonstrates both operational efficiency and financial resilience. The company’s high-frequency user engagement, rising partner retention and broad selection of offerings have created a sticky user base that drives sustained growth,” said Rajan Shinde, Research Analyst at Mehta Equities.

“In FY24, Swiggy reported a revenue of INR 32,222 Mn, growing 34.8% YoY, and negative PAT stood at Rs 611 crore The company’s growth strategy faces notable challenges. While it aims to expand services and partnerships, reducing discounts may impact customer loyalty, and relying heavily on advertising and premium offerings might not be sufficient to drive profitability. Despite efforts to improve operational efficiency, the intense competition and current negative financial metrics raise concerns about long-term viability. At the upper band of Rs 390, the issue is valued at a negative PE of (37.40) based on FY24 EPS of Rs 10.5. We are recommending “Subscribe for aggressive investors” to this issue,” said SBI Capital Services in an IPO note.

The shares of Swiggy were trading at a price of Rs 391 in the grey market, a rupee more than the issue price. The grey market is an unofficial place to trade shares ahead of listing.

Swiggy is a leading consumer-first tech company offering a unified app for food delivery, groceries, and household items, alongside services like restaurant reservations, event bookings, and product delivery. Since launching in 2014, The company has become a pioneer in hyperlocal commerce, expanding quickly with innovative solutions.

“We recommend subscribing to the IPO as favourable scale and long-term opportunities in quick commerce provide growth runaway while the food delivery vertical has the potential to improve the margin and cash flow going ahead. Swiggy’s IPO price band implies 1) an EV/revenue multiple of ~6.5x, 2) an EV/GOV of 2.1x, and 3) a P/S of 6.7x based on annualized FY25F financials. The valuation is at a discount to Zomato, which trades at an EV/revenue multiple of 11.3x, EV/GOV of 3.2x, (annualized) and a P/S of 11.4x based on FY25F consensus estimates. Internal controls, as reflected in the auditor’s qualified opinion and increased competitive intensity, are the key downside risks, in our view,” said InCred Equities in an IPO note.